7th CPC may go for reduced Grade Pays, MACP to stay

New Delhi: Seventh Pay Commission is likely to recommend to reduce “Grade Pay” and to stay “MACP” systems for central government employees, which was recommended by the sixth pay commission in 2006.

The Pay panel sources today said the Seventh Pay Commission is considering reducing the provision of Grade Pay and staying Modified Assured Career Progression (MACP) Scheme for the central government employees.

Grade Pay was derived from USA and it has increased in prominence in the early 21st century in USA. Federal employees in USA at all levels are paid based on Grade Pays. The six pay commission followed them.

“Central government has 15 grade pays now from Rs 1,800 to Rs 12,000 for job level pay variance of its employees. Generally, multi tasking staff (MTS) and clerical jobs that require formal education, just a high school or higher secondary, who are at are at the lower levels from grade pays 1,800 to 2,000.

One common factor in the grade pays 2,400 to 12,000 that’s where bachelor’s degrees are required for jobs in non-technical and non-scientific departments.

Hence We decided to reduce grade pays from 15 to 10,” the sources added.

A grade pay is a structured pay format where employees are placed at a given pay level based on their level of education and work experience related to the position.

“Every employee does not get promotion in time. So, if Modified Assured Career Progression (MACP) Scheme is not maintained it will be seriously affected,” the official said.

The MACP provides central government employees upper grade scale when they do not get promotion in time.

Accordingly, the sources said the Modified Assured Career Progression (MACP) Scheme is likely to be kept the current status quo.

The Seventh Pay Commission, headed by Justice A K Mathur, was appointed by the previous UPA government in February 2014 and its recommendations are scheduled to take effect from January 1, 2016.

Meena Agarwal is the secretary of the Commission. Other members are Vivek Rae, a retired IAS officer of 1978 batch and Rathin Roy, an economist.

The Seventh Pay Commission was appointed for 18 months, its terms was extended in August 2015 by four months till December 31, 2015.

The government constitutes the Pay Commission almost every 10 years to revise the pay scale of its employees and often these are adopted by states after some modifications.

As part of the exercise, the Commission holds discussions with various stakeholders, including organisations, federations, groups representing civil employees as well as Defence services.

The Sixth Pay Commission was implemented with effect from January 1, 2006, the fifth from January 1, 1996 and the fourth from January 1, 1986.